PART I: Answer the following questions as TRUE, FALSE OR UN- CERTAIN (60 marks). You do not have to justify your answer. 1. For commodity money (such as gold and silver coins) there is the mining issue which creates its scarcity value but for cryptocurrencies like the bitcoin there is nothing there to anchor their valuations, and therefore investors should think of them as speculative assets. 2. In general, a barter economy with two commodities is less efficient than a monetary economy with two commodities. 3 A individual tends to be a net lender if his/her rate of time preference is greater than the real interest rate. 4. High interest rates cause high inflation rates because they raise the cost of production. 5. Counting assets such as chequing accounts deposits and currency con- sisting of paper money and coins is an adequate measure of money. 6. Bond holders fare better when the yield to maturity increases than when it decreases